Futures Respect Friday’s Lows

YM & XM respect their post-Sydney lows at the re-open, with most of Friday’s after hours bear steepening intact as the former trades -4.0 and the latter -9.5. Participants face the same competing forces as are seen in the U.S. Tsy space i.e. risk negative weekend headlines vs. reaction to Friday’s NY price action.

• The Bill strip runs -1 to +1 through the reds.
• The local docket is non-existent today, with a lack of notable domestic weekend news flow evident, meaning that wider forces and flows will likely drive price action during the first Sydney session of the week. Domestic risk events to keep tabs on this week include, CBA household spending data (Tuesday), the monthly NAB business survey (Tuesday), retail sales ex-inflation (Tuesday), Westpac consumer confidence (Wednesday) & an appearance from RBA Deputy Governor Bullock on a panel discussion at the Regulators 2022 (FINSIA) (Friday). Elsewhere, as we noted on Friday, there will be a slightly more active AOFM issuance slate this week.